Document text
Oregon Road Conditions & Cams Email Story to a Friend October 25, 2005 More customers allege fraud by Lithia By SARAH LEMON Mail Tribune Another 27 consumers have filed suit against Lithia Motors Inc., alleging fraud, racketeering and unlawful trade practices. The plaintiffs join 30 others who have sued Lithia in U.S. District Court for approximately $112 million, said Lisa Shultz, paralegal for Medford attorney G. Jefferson Campbell. Filed last month, the suit alleges the Medford auto retailer’s financing practices violated federal and state anti-racketeering laws and Oregon’s Unlawful Trade Practices Act. The lawsuit alleges that Lithia persistently altered customers’ credit applications. Most plaintiffs, Shultz said, also were victims of "blue book fraud" or false reports to lending institutions that cars had additional accessories in order to qualify for larger loans. As a result of borrowing beyond their means, many clients’ vehicles were repossessed, and some filed for bankruptcy, Shultz said. Lenders also were undersecured for vehicles that were not worth as much as Lithia claimed, Shultz said. The suits involve every Lithia dealership in Medford as well as others in Ashland, Roseburg and Eugene. The company’s subsidiaries and lenders also are named as defendants. Advertisement The latest case — Aripe, et al. v. Lithia Motors — builds on allegations made in 2002 by a former Lithia finance manager in Medford. Joe Kiefer said the company knowingly pressured its financing staff to make car sales by falsifying customer financial information. Kiefer left his job and filed a wrongful termination suit against Lithia. Campbell hired him about a year later as a paralegal. Kiefer’s case was settled in 2003, but terms of the settlement are sealed. Lithia representatives could not be reached for comment Monday. In a statement last year to the Securities and Exchange Commission, they said they had no reason to believe the lawsuits had any merit. The alleged activities would violate internal written policies and employee training. Lithia officers said they did not believe the lawsuits would have an adverse affect on operations or finances. Reach reporter Sarah Lemon at 776-4487, or e-mail More customers allege fraud by Lithia ">[email protected] . Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker dvd-r Distance Education Computer Security Ztech Media Hosting Sports Equipment Student Loans tcg student loan consolidation Online Pharmacy online casino Myspace Home Equity Loans Windermere Van Vleet Rogue Valley Travel Reservationstogo Hotel Reservations Southern Oregon Loans Online Casino News Natto Kinase Nattokinase Casino Gambling Sites Budget Website Templates Investments & Loans Advertisement s